Oil jumps back above $73 as report points to falling stockpiles

Oil jumps back above $73 as report points to falling stockpiles

Oil climbed back above $73 a barrel after an industry report pointed to a big decline in US crude inventories ahead of an OPEC+ meeting that's expected to lead to the group returning more supply to the market.

Futures in New York rose 0.7% in early Asian trading, and are set for a third monthly gain. The American Petroleum Institute reported stockpiles fell by 8.15 million barrels last week, according to people familiar with the data. OPEC+ delayed preliminary talks on the oil market to allow members more time to resolve differences before its main meeting Thursday, as the spread of the more infectious delta variant of Covid-19 raised demand concerns.

The recovery in key energy consumers including the US and China has helped underpin a surge in fuel demand and headline oil prices this year. OPEC+ predicts the market will remain in deficit for the rest of 2021 if it keeps output steady, while the prospect of an imminent flood of Iranian crude is fading as talks between Tehran and world powers to revive a nuclear deal drag on.